9 Ways to Help Pay for the Cost of Prescription Drugs

According to a recent study, Lifetime of Care: Examining the Cost of Healthcare in the U.S., insured Americans routinely underestimate their healthcare costs by 145%, spending almost 1.5 times more per year than what they estimate or plan for.¹

Though some healthcare insurance plans may cover all or a portion of certain medications, the same study found that on average, adults pay around $424 per year for prescription medications.¹

The recurring cost of prescription drugs can be a challenge to any budget, especially if you or your family members are prescribed multiple medications or you need a regular prescription to maintain your long-term good health.

The good news is that there are a few workarounds and tools you can utilize to help you pay for prescription drugs.

1. Ask Your Doctor About Generic Brands

Brand-name prescription drug costs can vary widely, as does the amount of prescription drug coverage offered by many healthcare insurance plans.

If your doctor has prescribed a brand-name drug as part of your treatment plan, ask them if there's an equally effective generic formula, and if switching is a safe option for you.

Americans saved more than $373 billion in 2021 opting for generic prescription drugs over their brand-name counterparts.²

2. Look Into Patient Assistance Programs (PAPs)³

Patient Assistance Programs (PAPs) are typically sponsored by pharmaceutical companies, and aim to help patients without health insurance or who are underinsured afford their prescription medications. Some PAPs are also sponsored by nonprofit organizations or government agencies.

Eligibility requirements and coverage vary from program to program; there's no standardized qualification process. Contact the drug manufacturer directly or visit their website to see if they offer a PAP for your prescription drug.

Some PAPs offer full coverage of the medication cost while others offer a discount or low-cost option. There may be limits to the benefits you receive, such as the amount of medication per month or how long the PAP lasts. Your doctor may also be required to fill out a portion of the application.

3. Consider Medicare Prescription Drug Coverage

Medicare provides several prescription drug plans, including a Medicare prescription drug plan or Medicare Advantage Plan (Part D and C), or other Medicare health plan that offers drug coverage.⁴

Your actual drug costs will vary based on your prescriptions and if they are covered by your chosen plan, your deductibles and which pharmacy you use (such as a preferred pharmacy or a mail-order service), among other factors. You may also qualify for a program called Extra Help to help pay for Medicare prescription drug coverage.⁵

4. Explore State Pharmaceutical Assistance Programs (SPAPs)⁶

Some states offer State Pharmaceutical Assistance Programs (SPAPs) to assist their low-income seniors or residents with disabilities in paying for prescription drugs. Each state program works differently, with different levels of prescription coverage and eligibility requirements.

SPAPs generally provide coverage in conjunction with Medicare's prescription drug coverage (Part D) to cover drug costs that Medicare Part D doesn't pay.

5. Use a Prescription Discount Card⁷

A prescription discount card, sometimes called a pharmacy discount card, offers reduced pricing on prescription medications when used within a network of participating pharmacies, and is available to people with or without health insurance.

There is generally no cost to use these cards, and for people without health insurance, prescription discount cards can significantly reduce the cost of medications.

Prescription discount cards can also be used by patients with health insurance, although discount cards and a health insurance copay cannot be used together. Some patients have reported, however, that for certain prescriptions, they received a better price with their pharmacy discount card than the health insurance copay.

6. Take Advantage of Manufacturer Copay Cards⁸

Sometimes called copay coupons or copay assistance programs, manufacturer copay cards help offset the price of brand-name medications that do not have a generic equivalent.

Copay cards reduce a patient's out-of-pocket expenses when the cost of the medication is shared in part by the patient's health insurance and in part by the manufacturer. Patients can enroll in a manufacturer's copay program through the medication's website. Eligibility for a manufacturer's copay card generally requires you to have commercial or private insurance, and you cannot have government insurance such as Medicare or Medicaid.

7. Opt for Lower-Cost Pharmacies

Another option is a lower-cost pharmacy. For example, Mark Cuban recently launched the Cost Plus Drugs online pharmacy, which provides many medications at a lower cost to the patient.⁹ This pharmacy is unique in that it clearly lists the price you'll pay for each medicine on the website.

You'll need your care provider to write a new prescription to Cost Plus Drugs to qualify. Many times, you may need to personally contact your pharmacy or your insurance company to determine what you'll be paying.

8. Change Your Health Insurance

Sometimes, changing your health insurance can minimize prescription costs. When researching new health plans, look into how much your insurance will charge for the prescriptions you need.

You'll want to make sure the drug is on the health plan's formulary, which is a list of generic and brand-name drugs the plan covers.¹⁰ If it's not, you may end up paying more or it might not be covered at all. Once you know if it's on the formulary, find out the copay for the drug. This can vary based on what tier the plan has placed it on — higher tiers typically cost more.

If you know you need certain drugs, you might look for health plans that list those drugs on lower tiers, which typically indicate a lower cost to you. Of course, you can only change your health plan during open enrollment or if you qualify for a special enrollment period. You'll qualify if you have a major life event such as losing coverage, getting married, having a baby or for certain income situations.¹¹

9. Use the CareCredit Credit Card

Did you know you can use your CareCredit credit card nationwide at our pharmacy-and-prescription network locations?* This includes Walgreens, Walmart, Rite Aid and Sam's Club.** Use the CareCredit credit card to help pay not just for prescriptions but also for flu shots, immunizations, OTC medications, deductibles, copays and coinsurance for you and your family.

Managing Healthcare Costs With the CareCredit Credit Card

If you are looking for an option to help manage your medical bills, consider healthcare financing with the CareCredit credit card. The CareCredit card can help you pay for the care you want and need and make payments easy to manage.* Apply today and use our Acceptance Locator to find a provider near you that accepts CareCredit. Continue your wellness journey by downloading the CareCredit Mobile App to manage your account, find a provider on the go, and easily access the Well U hub for more great articles, podcasts, and videos.

Author Bio

Anne-Marie Kennedy is a freelance writer with more than 20 years of experience covering health and wellness, personal finance, and real estate/investing.